Two-year Tribeca foreclosure saga continues with lawsuit over $20M
Churchill Real Estate aims to collect money it’s owed by CTW Realty’s Gary Tse
Churchill Real Estate has filed a lawsuit against a company tied to CTW Realty’s Gary Tse in order to collect a $20 million foreclosure judgment.
The lawsuit, filed in New York State Supreme Court, is Churchill’s apparent attempt to counter Tse’s recent move to seek Chapter 11 bankruptcy protection for the shell company, 381 Broadway Realty, which faces foreclosure and $23 million in debt, including $20 million from Churchill.
In the complaint, Churchill alleges that Tse has violated the debt agreement by letting his childrens’ business, Caden, host “boisterous and loud parties” at 381 Broadway without collecting rent, and by taking out total $5.5 million loans against the building without Churchill’s consent.
“Given the foregoing, Tse is liable for the full unpaid value of the debt,” the complaint states.
Leopold declined to comment. Elena McDermott, the attorney representing 381 Broadway Realty, did not respond to a request for comment. Caden did not return a Facebook message seeking comment.
In March, Churchill won a $20 million default judgement against Tse’s 381 Broadway Realty following a months-long foreclosure proceeding. But the company has not been able to proceed with the foreclosure process because of the pandemic lockdown.
Earlier this month, 381 Broadway Realty filed for bankruptcy, prompting an automatic stay on its creditors’ debt collection.
According to the bankruptcy filing, Tse’s company owes $3 million to Titan Capital of Westport, Connecticut, in addition to $20 million to Churchill.
Another property owned by Tse at 55-59 Chrystie Street in Chinatown was sold in a bankruptcy auction earlier this year. Jeffrey Lam of Lam Generation bought the 46,000-square-foot mixed-use building in Chinatown for $28.6 million, according to public records.